Banks today offer systems having remote check image capture from a business site using a dedicated check scanner attached to a computer. The advantages of this system to the customer include the convenience and cost savings of not having to go to the bank, the capability of making multiple deposits during a day, and placing checks into a collection stream after branch hours. In addition, customers also have cost savings and increased funds availability, which, in turn, results in either increased earnings or reduced borrowing costs.
Remote check image capture provides many benefits to the banking industry such as increased customer convenience, enhances bank revenue, improves customer retention, and reduces the cost associated with replacing customers. Further, remote check image capture may also increase an effective footprint of a bank branch (e.g., successfully serve customers at a greater distance from the branch). For example, new customers may be attracted even though they are far from the branch because the new customers can use remote check image capture. The added benefit of remote check image capture makes it easier to add new customers thus, the close rate of customer acquisition increases and the cost decreases. This technique is useful for banks with a limited sales force because it is cheaper, and requires no additional resources.
FIG. 1 is a block diagram of an existing remote check image capture system 100. Here the remote check image capture uses a dedicated check scanner 105 attached to a computer 110. Images, based on a scanned item(s) (not shown), and associated data are sent to a bank, via a data connection 115, or service bureau. Next, the system 100 receives the images 120. After the bank receives the images, image quality is assessed, security tests are performed, and the deposit is proved 125 (total deposit amount matches sum of check amounts, which can be read in various ways). If the bank offers image statements, “on us” items are processed as images after appropriate format conversion in Account Statement preparation 130, resulting in a statement 135. Similarly, if the bank chooses to send images 145 to check clearing 140 then no extra processing is required as long as the file format for images and data conform to industry standards. On the other hand, if the bank is returning checks to customers or the receiving bank does not accept the check images, a substitute check 150 must be created. The industry expectation is that over time all banks will both send and receive images.
Currently banks lack a way to offer low volume users (e.g., individuals or small businesses) of deposit transactions, a low cost way to use remote check image capture. Therefore, there is a need to use ubiquitous imaging devices (e.g. FAX machines, flat bed scanners) for check image capture. If ubiquitous imaging devices are used, banks and customers would get the same types of benefits as with higher cost check scanners, described in FIG. 1 without the costs associated with having a dedicated check scanner. This invention addresses this need by providing a system that is based on variable rather than fixed cost.
Moreover, the cost of substitute checks affects the economics of remote check image capture. Experience suggests that the added cost of producing a substitute check has only limited impact on customers who deposit only a few high value checks at a time. This type of customer is also an ideal candidate for using their existing FAX machine, flat bed scanner, or other ubiquitous imaging device to remote capture check images and make deposits.